Crime Doesn’t Pay: iPod Scammer Brought Up On Federal Charges

Prosecutors have just brought federal charges of fraud and money laundering against Nicholas Arthur Woodhams of Kalamazoo, Mich. You may remember Woodhams as the man who scammed Apple out of numerous iPod shuffles, a plot that got him sued by the company in June 2008.

Here’s how the scheme worked: Between March 2006 and October 2007, Woodhams guessed valid, serial numbers of iPod shuffles that were under warranty and have Apple send him replacement products. Then those would be sold for $49 each—that’s $30 less than the then-price of $79.

The government is seeking to seize the alledged procedes of the crime, including more than $571,000 in cash, seven Apple computers, two vehicles, a motorcycle and real estate belonging to Woodhams.